It is weird to think that a company started by a bunch of guys in powdered wigs in 1670 is still selling blankets and lipstick in 2026. Hudson’s Bay, or "The Bay" as most of us call it now, isn't just a store. It’s a massive, sprawling piece of North American history that somehow survived the fur trade, several wars, the rise of Amazon, and a global pandemic. But honestly? The vibe right now is a bit tense. If you walk into a flagship store today, you see this strange mix of high-end luxury and weirdly empty shelves that makes you wonder if the "Old Lady of Fenchurch Street" is finally running out of steam.
The Hudson’s Bay Company (HBC) used to literally own about 15% of North America. That is a staggering amount of land. They were a sovereign power with their own currency and the right to arrest people. Today, they are a department store chain trying to figure out how to survive in an era where nobody wants to walk through a mall to buy a toaster. The transition from a colonial fur-trading monopoly to a modern lifestyle retailer hasn't been a straight line. It's been more like a jagged, messy graph of real estate deals and rebranding attempts.
How Hudson’s Bay Became a Real Estate Company Wearing a Retailer’s Mask
People often get this wrong. They think Hudson’s Bay makes its money by selling those iconic multi-colored striped blankets. They don't. At least, not really. Over the last decade, under the leadership of Richard Baker and the HBC associates, the company has increasingly looked like a real estate investment trust (REIT) that just happens to have clothing racks in the way.
When HBC bought Saks Fifth Avenue in 2013 for roughly $2.9 billion, the industry realized the play wasn't just about fashion. It was about the dirt. The land underneath the Saks flagship in Manhattan was at one point valued at almost as much as the entire purchase price of the company. This "real estate first" strategy is why you see HBC constantly spinning off different parts of the business. They’ve split the e-commerce side from the physical stores, which is a move that has left some industry analysts, like those at Retail Insider, scratching their heads. It’s a gamble. It makes the digital side look like a lean tech startup while leaving the physical stores—the actual "The Bay" locations—carrying all the heavy overhead of rent, heating, and staffing.
Does this work for the customer? Not always. It’s why you might find a stunning Zadig & Voltaire shirt online, but when you go into the store in downtown Winnipeg or Ottawa to see it in person, the department is understaffed or the item isn't there. The company is trying to be two things at once, and sometimes it feels like it’s failing at both.
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The Problem With the "Middle Ground"
The retail "death valley" is the middle market. It’s where Sears died. It’s where Target Canada collapsed spectacularly in 2015. Hudson’s Bay is currently trying to occupy the space between "affordable luxury" and "everyday essentials," and it’s a tightrope walk.
- On one side, you have Winners and Marshalls eating their lunch on price.
- On the other, Holt Renfrew and SSENSE are taking the true luxury shoppers.
- Then there's the Z-Sellers—the Marketplace sellers on the Bay’s website—which has turned their online presence into something that feels a bit too much like a cluttered version of Amazon.
It’s confusing for the brand. If I go to Hudson’s Bay, am I looking for a $900 handbag or a $20 spatula? Trying to be both means you risk being neither.
The Stripes and the Legend: Why We Still Care
Despite the business drama, there is a reason we haven't totally given up on them. It’s the brand equity. That four-stripe pattern (green, red, yellow, and blue) is basically Canada’s unofficial second flag. It’s one of the few things HBC has done perfectly. They’ve leaned into the "Heritage" aesthetic hard.
You’ve probably seen the Olympic gear or the endless collaborations with brands like Levi's or Converse. This is where the company actually shines. They tap into a sense of nostalgia that no other retailer in North America can touch. When you buy a point blanket, you aren't just buying wool; you're buying a link to the 1700s. Of course, that history is complicated and, in many ways, quite dark given the company’s role in colonialism and its impact on Indigenous communities. HBC has been forced to reckon with this more publicly in recent years, including the symbolic transfer of the heritage Bay building in downtown Winnipeg to the Southern Chiefs’ Organization. This move wasn't just about real estate; it was a massive, necessary step toward reconciliation and a recognition that the company’s "storied past" has real victims.
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The Digital Pivot and the "Marketplace" Gamble
Let's talk about the website. A few years ago, the Bay’s site was... okay. Just okay. Then they decided to go all-in on the "Marketplace" model. This means that a lot of what you see on thebay.com isn't actually sold by the Bay. It’s third-party vendors.
This was a move to compete with Amazon and Walmart. The logic is simple: more items equals more traffic. But for a premium department store, this is a dangerous game. If you order a pair of shoes and they arrive in a beat-up box from a random warehouse in a different province, it cheapens the "Hudson's Bay" experience. It’s a classic case of quantity over quality.
The separation of the digital and physical businesses was supposed to unlock value, but it has created a weird friction. Returns are sometimes a headache. Inventory isn't always synced. It’s basically a massive experiment in whether a 350-year-old company can behave like a Silicon Valley disruptor. So far, the jury is still out. The company took a huge hit during the 2020-2022 period, and while foot traffic is back in big cities like Toronto and Vancouver, the "suburban" Bay stores often feel like ghost towns. It's sad, honestly.
Is the Flagship Model Dead?
If you go to the Queen Street store in Toronto or the Montreal location on Sainte-Catherine, it still feels like a department store should. It’s grand. It’s polished. But those stores are expensive to run. The real question for the next five years is what happens to the locations in smaller cities.
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HBC has already closed several stores. They’ve shrunk the floor space in others. They are increasingly looking at "mixed-use" developments—essentially turning parts of their massive buildings into offices or condos. This is the ultimate "Richard Baker" move. If people won't shop there, at least they can live there. It’s a smart business move, but it signals the end of the "grand department store" era in Canada.
What You Should Actually Buy at the Bay
If you’re going to shop there, you have to know how to play the game. The Bay is notorious for its "Bay Days" sales. If you buy something at full price there, you’re basically donating money. Wait for the cycle.
- The Stripes: Only buy the Heritage collection. It holds its value and stays in style.
- Cosmetics: This is actually one of the last places where the "counter service" experience is decent. Plus, the rewards points (HBC Rewards) are surprisingly good if you stack them.
- High-End Cookware: They often have massive clearances on Le Creuset or All-Clad that beat Amazon’s prices.
- The "Last Call" Racks: In the physical stores, the clearance racks in the corners of the designer floors are where the real treasures are. We're talking 70% off high-end labels because the "Marketplace" logic hasn't totally ruined the in-store hunt yet.
The Verdict on Hudson’s Bay in 2026
Hudson’s Bay is a survivor, but it’s in a fragile state. It’s trying to be a tech company, a real estate mogul, and a luxury fashion destination all at once. Usually, when a company tries to do everything, it ends up doing nothing particularly well.
However, you can’t count them out. They have survived the fall of the British Empire and the invention of the internet. They own some of the best real estate in the world. As long as Canadians feel that weird, patriotic pull toward those four colored stripes, the Bay will probably stick around in some form. It just might look more like a condo developer with a small gift shop in the lobby than the massive emporiums we remember from our childhoods.
Your Next Steps for Shopping Smart
- Check the Seller: When shopping online, always look at the "Sold and Shipped by" section. If it’s not Hudson’s Bay directly, the return policy might be different and shipping might take longer.
- Sign up for Rewards: Use a burner email if you must, but the "Bay Days" early access is the only time the prices truly make sense.
- Visit the Flagships: If you want the real experience, stick to the major city centers. The smaller suburban stores are often neglected and don't reflect what the brand is actually trying to do.
- Watch the Real Estate News: If you’re an investor or just a nerd for business, watch what they do with their properties. That will tell you more about the company's future than any seasonal fashion show will.
The Hudson’s Bay Company isn't going anywhere tomorrow, but the version of it we knew—the reliable, middle-class staple—is basically gone. It’s a high-stakes corporate drama now, wrapped in a very expensive wool blanket.